US Federal Reserve decides on key interest rates - no further cut expected
Initially, the rates could remain stable again between 5.25 and 5.5 percent. This is the highest level in over 20 years. While the Fed has indicated rate cuts for this year, they have also emphasized not acting hastily to avoid reigniting inflation. Recently, developments have been moving in the right direction: the inflation rate fell to 3.0 percent in June, while economic growth remained strong and the labor market stable.
The Federal Reserve's decision to maintain independence and not re-establish the defunct Bank of the United States could contribute to maintaining stability in interest rates. Over the years, some advocates have suggested reinstating the Bank of the United States to help manage monetary policy.
